Day Traders Diary
The major averages rose once again as investors continued to bet the impact of the omicron variant would not be as threatening as many previously thought. The Dow Jones Industrial Average reversed higher to end of the trading day, adding 35 points. The S&P 500 inched up 14 points or 0.3% while the tch-heavy Nasdaq Composite rose 100 points or 0.6% to 15,786.
Some of the comeback was validated by vaccine news Wednesday. Pfizer and BioNTech said three doses of their vaccine are effective at neutralizing the omicron variant, citing their own preliminary lab tests. They also said two doses may still protect against severe disease.
Pfizer shares, which are up 6.3% in the last month, fell slightly.
Many had already anticipated the new variant would be manageable, an expectation that helped drive the rebound Monday and subsequent rally Tuesday.
Still, travel-related stocks continued roaring higher as the news gave investors added confidence in reopening bets. Norwegian Cruise Line jumped 8.2% and was the biggest gainer in the S&P 500, followed by Carnival and Royal Caribbean, which were each about 5% higher.
Airline and casino stocks made big moves too, including United Airline and Las Vegas Sands, which each gained about 4%. The Invesco Dynamic Leisure and Entertainment ETF rose 1.09%.
Zigmont said the market is highly technical right now, and that investors and traders stampeded into stocks after seeing a bottom on Monday "to take advantage of what everyone thinks is coming next, which is higher highs." Those new highs probably won't come until January, however, he added.
Elsewhere, PagerDuty shares surged 11.2% after the maker of IT response software gave better-than-expected current-quarter revenue guidance.
Shares of Meta Platforms climbed 2.4% after the company gave its employees the option to delay their return to the office, currently scheduled for the end of January, by three to five months.
Apple shares are also higher by 2.2% after UBS maintained its buy rating on the stock despite recent concerns about demand for the iPhone 13.
However, those gains were offset by downward moves across the rest of the market.
Shares of Stitch Fix tumbled 23.9% after issuing disappointing current-quarter revenue guidance and membership metrics.
Grill maker Weber's shares fell 5.1% after it reported a narrower-than-expected loss for its latest quarter.
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